Algorand has partnered with ClimateTrade, a company that helps other companies balance their CO2 emissions and finance climate projects
Yesterday Algorand announced in a press release that its Blockchain is fully climate neutral, and that their architecture is designed to be as efficient and green as possible. The Blockchain aims to improve the efficiency of your sustainability efforts through a partnership with the climate trade.
The Spanish Fintech companies climate trade supports companies in their CO2 emissions and to Finance climate protection projects in order to achieve their sustainability goals. It makes the carbon markets in a transparent and traceable, and is currently working on over 150 projects with more than 20 companies including Telefónica, Iberia, Cabify and Melià Hotels.
Due to the network’s flexible architecture, low transaction fees, and scalable transaction performance, ClimateTrade chose Algorand as its primary infrastructure level last year.
Francisco Benefito, CEO of climate trade, commented: “Clean energy and dealing with climate change are a priority for both the United Nations and global organizations and governments. Algorand itself has a very low CARBON footprint, and we are excited about the leadership the company is taking in making the next generation of blockchain adoption environmentally friendly.“
This low CARBON footprint is achieved by Algorand’s pure proof-of-stake consensus mechanism, which requires far less computing power and power than the energy-intensive proof-of-work mechanism. Indeed, initial analysis suggests that 2 million times less CO2 is emitted when digital assets are created or transferred to Algorand compared to other blockchains.
Silvio Micali, the founder of Algorand, explains: “The network of Algorand is growing faster and is being used more and more. As this phase of extreme growth continues, it is important for us to work on a climate-neutral basis. Sustainable growth is much better than just growth. We are aware that the mechanisms for measuring the environmental impact of a global, decentralised and widespread blockchain are nuanced and complex. This is why we are working with ClimateTrade to continue and strengthen our environmentally conscious efforts.“
With the help of climate trade Algorand is to develop a sustainability plan in order to achieve its CO2-negative targets. Based on this plan, the CO2 footprint of Algorand is determined for a certain number of blocks and the corresponding amount in the form of emission certificates is locked into a kind of “green safe” by advanced smart contracts as an Algorand Standard Asser (ASA).
Sustainability organizations such as the global carbon Holding and planet watch have taken on Algorand. Yesterday, PlanetWatch and Algorand were honored by CERN as part of Earth Day.